RS Group Of Companies Inc., a provider of pass-through risk specialty insurance, reinsurance products and affinity programs, announced the company has met its financial guidance for its gross profit in fiscal 2004. The company earned over $6.5 million in operating income for the year ending Dec. 31, 2004.
The company’s revenues from insurance underwriting premiums and brokerage fees for the 12 month period ended Dec. 31, 2004 were $16,322,437 as compared to $58,492 for the same period in 2003, an increase of $16,263,945. Approximately $10,424,000 of revenues was due to insurance underwriting fees mainly the result of the purchase in 2004 of Canadian Intermediaries Limited.
Also, the company’s net comprehensive income for the twelve month period ended Dec. 31, 2004 was $305,602 as compared to a net loss of $2,250,987 for the same period in 2003. The company moved forward, completing various initiatives that have contributed to its 2004 operating year. Highlights include:
— Completed acquisition of Canadian Intermediaries Limited.
— Two of the largest timeshare developers, with combined revenues in excess of $200 million, have signed on for Value Guaranteed Vacations Inc.’s (VGV) affinity program, offering their timeshare owners cost protection and other benefits.
— Completed the acquisition of Dashwood, Brewer & Phipps Ltd, a highly respected, profitable Lloyd’s insurance broker based in London, England that was established more than 70 years ago.
— An insurance carrier with a Best’s Rating of “A” was secured to underwrite RentShield, the rental services program.
Commenting on the company’s 2004 achievements, CEO John Hamilton stated, “With these relationships in place, we will have the ability to provide underwriting support for RSGC’s products through its established and highly regarded network within the London and Lloyd’s markets, specializing in ‘hard to place’ liability, bloodstock mortality and credit insurance in the North American market. Additionally, we are currently in negotiations with several timeshare developers who see the potential of the VGV affinity program to enhance timeshare sales. This program is being well received by the timeshare industry as developers and buyers begin to realize the value that timeshare cost protection provides.”
On Dec. 17, 2004, the company announced its intention to be acquired by Strategy International Insurance Group Inc. Strategy International has engaged a financial services firm to render a fairness opinion regarding the transaction. It is anticipated that once the fairness opinion is completed, a definitive agreement will be executed.
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